Criminals hoping to leverage bitcoin’s pseudoanonymity slip up in failing to take further, even basic, privacy precautions. So was the case for the latest dark web dealer to plead guilty to drug trafficking, Gal Vallerius, who was caught after American authorities scrutinized activity linked to his bitcoin addresses.

“[…] Conspiracy to Possess with the Intent to Distribute Controlled Substances, in violation of Title 21, United States Code, Section 846, and Conspiracy to Launder Money, in violation of Title 18, United States Code, Section 1956(h).”

With regard to the cryptoverse, Vallerius had notably been originally tracked partly after American authorities with the Drug Enforcement Administration (DEA) had identified several of his bitcoin addresses from his use of peer-to-peer trading service Localbitcoins.com.

“‘In connection with his role as a ‘senior moderator,’ [Vallerius] also sold controlled substances to other members using the website, receiving payment for these sales through the use of a bitcoin ‘tip jar,’ or electronic depository,’ according to a magistrate judge’s summary of the prosecution’s case. ‘It was through this tip jar that law enforcement officials became aware of Vallerius’ true identity.'”

It’s yet another stark reminder for crypto’s criminal class that the powers-that-be are paying increased attention to on-chain activity. The whole episode is right in line with Open Privacy Executive Director Sarah Jamie Lewis’ recent remarks to Bitsonline that crypto is a “major deanonymization vector” on the dark web.

Criminals Looking Elsewhere

The Litecoin increase is curious, since it has the same degree of pseudoanonymity that bitcoin usage has. On the other hand, Monero’s ring signature technology makes it a potent privacy coin that naturally fits the needs of those seeking superior privacy. Aero, Libertas, and Toochka are three dark web markets that accept XMR, for instance.

About William Peaster

William M. Peaster is a poet, novelist, and cryptocurrency correspondent based out of El Paso, Texas. He is not a financial adviser. He enjoys covering both the promise and warts of the emerging cryptoeconomy. Follow him on Twitter: @WPeaster